Colombia’s finance minister, Alberto Carrasquilla, has confirmed that he has resigned, local media report, turning down calls to reconsider his decision by President Alvaro Uribe. Despite news of his departure, the markets seem reassured that a successor will likely continue with his disciplined, market-friendly policies. According to earlier reports, the former minister offered Uribe the names of presidential advisor Oscar Iván Zuluaga and Roberto Steiner, Colombia’s representative at the IMF, as possible replacements. Carrasquilla became finance minister in 2003 but last year signaled his intention to step down for personal reasons.
Category: Regions
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Davivienda Raises $180 Million From Shareholders
Colombian bank Davivienda has succeeded in raising around $180 million from the issuance of new shares to existing shareholders. Sociedad Bolívar, the bank’s parent company contributed $75 million, as did the IFC which increases its equity stake in Davivienda from 4% to 9%. Minority shareholders accounted for $30 million. The funds raised will go towards financing Davivienda’s acquisition of Bancafe which was given the go-ahead by the financial regulator last week. Davivienda bought Bancafe from the government at auction for $927 million last October.
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Cemex Prices $750 Million Perpetual Bond
Mexican cement maker Cemex priced a $750 million perpetual, non-call 8 bond yesterday at par to yield 187 basis points over comparable U.S. Treasuries. The transaction was tightened from 190 basis points over as orders exceeded $3 billion, according to bankers close to it. Cemex apparently went out initially looking for $500 million. The 6.64% coupon bonds step up to Libor+440bp in year 8. Proceeds will be used to pay for an eventual acquisition of Rinker, based in Australia, a hostile takeover which could happen as early as March, according to recent filings. If the deal falls through, the cash will be used to refinance existing debt. Barclays and JPMorgan were joint leads on the transaction, which settles February 12. Fitch rates it BBB.
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EDF To Sell Mexico Power Assets
French utility EDF is reportedly selling its five gas thermal power stations in Mexico as part of its strategy to concentrate on European operations. The company hired JP Morgan last month to sell the plants, which are estimated to be worth around $3.9 billion. EDF has been present in Mexico for about 30 years as a consultant to the CFE (Comisión Federal de Electricidad) and, since 1998, as an investor and operator. EDF manages and operates the five plants – Anahuac, Lomas de Real, Saltillo, Valle Hermoso and Electricidad Aguila de Altamira – via parent company Comego.
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CIBC Raises Majority Stake in FirstCaribbean
Canada’s CIBC has increased its majority stake in FirstCaribbean International Bank to 91.49% after tendering for the remaining shares in the bank. At the end of last year, CIBC bought the 43.7% share owned by Barclay’s Bank for $988.6 million in cash. The Canadian bank then made a mandatory offer to all shareholders. FirstCaribbean, which is now the largest regionally listed bank in the English-speaking Caribbean, is also rumored to be interested in taking a stake in Royal Bank of Trinidad, perhaps as a precursor to a merger.
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Duke Energy Sells Bolivia Assets to Econergy
US utility company Duke Energy has sold its Bolivian assets, which comprise a 50% stake in a hydroelectric dam, to Econergy International of the US for $20 million. The Corani dam is situated near the country’s third-largest city Cochabamba. Meanwhile, Econergy has announced that it has entered the Chilean market via a joint venture with local firm AMH. The companies will invest around $32 million to build a new hydroelectric facility on the Laja river with a 25-megawatt installed capacity. The plant is expected to be operational by 2008.
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Banco Azteca Finally Gets Nod
Honduran bank regulator (CNBS) has approved the application of Mexican Banco Azteca for a license to operate in Honduras, just over a year after it rejected the bank’s first application. Last January, the regulator cited as a reason the bank’s failure to disclose pending fraud charges against Azteca’s owner, Ricardo Salinas, in the US. Banco Azteca applied again to the CNBS in July. The charges against Salinas were later dropped after the US Securities and Exchange Commission (SEC) and Salinas came to an agreement.
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Enel Increases Panama Stake
Italian electricity company Enel, which entered the Central American power market last year, is to increase its stake in Panamanian hydroelectric plant Fortuna by paying $161.3 million for a further 24.45%, taking its overall share up to 49%. The government of Panama owns 49.9% of the company. Fortuna is one of Panama’s leading electricity companies, generating around 30% of the country’s power. Enel paid $150 million last August for a 24.55% share in Fortuna via the ownership of its holding company Hydro Quebec International Latin America. According to Enel “the Panamanian market is part of the larger Central American power market, which is experiencing extensive development characterised by economic and regulatory integration”. Enel also owns hydroelectric plants in Costa Rica, Guatemala and Chile.
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Colombia Finance Minister Resigns
Colombia’s finance minister Alberto Carrasquilla has resigned, local media reports, and is awaiting a decision from President Alvaro Uribe. According to Caracol radio, the former minister offered Uribe the names of presidential advisor Oscar Iván Zuluaga and Roberto Steiner, Colombia’s representative at the IMF, as possible replacements. Carrasquilla became finance minister in 2003 but last year signaled his intention to step down at year end for personal reasons.
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Colombian Bolsa Clears Way For IPOs
Colombia’s stock exchange has approved initial public offerings by cell phone operator Colombia Móvil and power generator Isagen, said the Bolsa. Colombia Móvil, acquired last year by Luxembourg-based Millicom, is planning to sell 9.25 million shares, possibly next week. Colombia’s government is hoping to capture around $262 million from the sale of 20%, or 2.44 million shares, of power generator Isagen, more than double its original estimate, later in the month. It has set a minimum price per share of 1,130 pesos ($0.50).